Forex Time Machine

Forex Time Machine is Live. Have you heard of the Forex Time Machine before? Maybe not. Do you know Bill Poulos? Forex Time Machine is the latest course launched by Bill on forex trading. Bill is a maverick when it comes to trading. He is 35+ years trading veteran. He is a great teacher too. He has a number of highly popular forex trading courses in his achievements. He can be your best mentor on forex trading. Here's what's up (Be sure to read this short note because...A LOT of other Forex traders are going to have a BIG EDGE over you when this is over...)

Forex Time Machine

In the past 2 weeks, over 78,915 traders bombarded a special, "insiders" Forex training website (Maybe you were one of them). There, 35+ year trading veteran Bill Poulos exposed his 2-part Forex "risk eraser" technique, revealing the key reasons most people lose in the Forex markets...

Forex Time Machine

-and how to INSTANTLY transform your Forex trading with a subtle "mindset flip" that most traders get completely wrong.

Now, it looks like a major change is about to occur with how individuals like you profit from the Forex markets. Why? Because Bill's "risk eraser" concept is turning a lot of heads and making people realize the true key to creating lasting profit potential in these markets.

Forex Time Machine

And based on the early feedback he's been receiving from those lucky enough to see a preview copy of his new Forex Time Machine training course, it looks like he's on to something. You see, Bill does everything in his power to give you the "keys to the kingdom" where you understand EXACTLY what to do when you go to place a trade. There's never any second guessing or wondering.

Forex Time Machine

CAUTION: This is NOT for "systems junkies", or individuals who like to let others make their trading decisions. But it IS for traders who like to have FULL CONTROL of their destiny in the markets.

Bill's new training course is called the "Forex Time Machine", because its goals are to:

** ERASE RISK every time you trade; today, tomorrow, next month, or next year...

-the concepts he teaches you are "future proof", so you can have confidence they'll be a permanent part of your trading "toolkit" for years to come.

** SAVE TIME by trading in any timeframe, even as little as 20 minutes a day...

-you'll further reduce risk and maximize your profit potential when you trade ONLY when it's right for you...

** ENJOY 3 TIMES the profit potential when you learn to spot 3 kinds of Forex "profit pockets" on any chart you look at...

Forex Time Machine

-you'll have the tools to do as much "profit getting" as possible in all major Forex pairs so you don't let that next "homerun" trade get by. His 3 step-by-step methods show you how...But it may already be too late, because he's initially only releasing 300 copies to give his "charter class" of new students the attention they deserve.

So unless you're already consistently taking home more Forex profit than you know what to do with...go ahead and check out the detailed letter Bill wrote for
you that reveals all the info behind his "what works now" approach to "erasing risk" on your Forex trades:

Forex Time Machine

I hope you make it into his "charter class" before it closes. After I took a look at the Forex Time Machine, I KNEW it was one of those courses that could create a rift in the trading community... because those folks who get their hands on Forex Time Machine will have a marked edge over those who don't...Get it here:

Forex Time Machine

10 Minute Forex Wealth Builder

10 Minute Forex Wealth Builder is a gift for you from Dean Saunders. Gift in the sense that you only need daily 10 minutes each evening to make money with the 10 Minute Forex Wealth Builder. The name Dean Saunders has been buzzing around the forex community with rumours of his revolutionary ground braking forex trading course.I had to check it out for myself and sure enough its very real..

10 Minute Forex Wealth Builder

Now I know for a fact that most forex trading systems are not all they are made out to be, but every now and then I come across something really special! Today is that special day. After hours of persuasion I managed to get a preview copy of what Dean is calling the…"10 Minute Forex Wealth Builder"!

10 Minute Forex Wealth Builder

... I was totally blown away. Dean shows you step by step exactly how he manages to easily extract enormous amounts of money from the forex markets while only checking his charts for less than 10 minutes each evening. Yes you read that correctly…Just 10 Minutes! This is an absolute goldmine for anyone looking to trade the forex markets around their current day job! If you are remotely involved in forex then you simply must check this out because I have never seen anything like it before in all my years of forex trading.

10 Minute Forex Wealth Builder

Here's just a few things that makes the "10 Minute Forex Wealth Builder" so special.

- Requires only 10 minutes each evening to trade.
- Uses unique price driven entry techniques.
- Removes all emotion from trading.
- Requires no previous experience.
- Trades that often rake in up to 400 pips each!

And on top of all that…The course is risk free for 8 weeks, so if you decide the course is not right for you any time within 8 weeks form your purchase date you will be repaid every cent no questions asked... But before you get too excited I'm afraid there is a catch. Last time I looked there were only a few copies left, in fact they might have sold out already!So if I was you I wouldn't waste another second here, go and secure your copy before its too late!

10 Minute Forex Wealth Builder

FX Child's Play System

FX Child's Play System is for you. There's been a ton of buzz around this FX Child's Play System over the past few days and if you haven't heard about it yet, let me just fill you in...It's called the "Fx Child's Play System" - created by Farhan The Professional Forex trader that exploits the forex markets in such a devious way that the resulting profits are in the realms of the insane.

FX Child's Play System

It consistently generates 86-90% winning rate. Let me just throw some other figures your way...

- $1,221.59 Per Day...
- $8,551.15 Per Week...
- $36,647.70 Per Month...

...and this was from a relatively small trading account. If you're in a rush, check out this fr'ee video and see the proof and reveal the rest of the story...

FX Child's Play System

Point being...if you're a suffering trader, you NEED this material. Badly. Ok, good news and bad news...Well, the BAD news is they're only giving this away to a very limited number of people... and you can't even access the material until next Monday. The GOOD news is you can get a sneak preview here. Just click the link and see for yourself:

FX Child's Play System

Watch the FX Child's Play System video here:

Point And Figure Trading

There are a number of charts that are used in trading. The most popular are the bar charts and candlestick charts. Do you know how to read Point and figure charts? Point and figure trading in many ways is similar to the support and resistance breakout trading on bar or candlestick charts. The main difference is the look and functionality of the price charts themselves!

Bar charts and candlestick charts show the high low open and close price for a given period. Point and figure charts represent price in a radically different manner from the more familiar bar and candlestick charts. Many forex charting platforms provide the option of point and figure charts.

Point and figure charts do not show any timeframe. This may confuse you in the beginning. Point and figure charts are a pure price action play because these charts generally exclude all other elements like time, volume and open/close other than price. Point and figure trading is based exclusively on price action.

Technical analysis is the study of price action. Technical analysis is used to predict or confirm an uptrend or downtrend or a consolidation in the market. Point and figure charts represent clear evidence of such important technical characteristics like trend, support/resistance and breakouts. Thus a point and figure chart focuses on the behavior of price action which is the most important factor from the technical analysis point of view.

If you look at the point and figure chart you will see many columns with Xs and Os marked in them. How do you figure out what does this means? A point and figure chart has got Xs and Os. A point and figure chart is constructed with a column of boxes alternately labeled with Xs and Os. An X column means that the price has risen in that column. Conversely, an O column means that the price has declined in that column.

So there is no concept of time in a point and figure chart. Only when price moves a significant amount regardless of time will an existing column grow or a new column is created. A new column is created going in the opposite direction when a reversal occurs on any column. So there is no time, volume, opens and close on point and figure charts.

How is a point and figure chart constructed? It depends on two variables. The first variable is the box size. This is the minimum amount that the price is supposed to move before a new box in the existing column is created. These two variables can alter the way the point and figure charts look and act.

You will see many columns of Xs and Os in the point and figure chart. X is equal to fixed price increase. Each X denotes a rising trend. For example, price would need to move an additional amount equal to the preset box size before another X would be added to the top of the column if a column of Xs has 10 boxes.

You can use the charting software to do the actual drawing. However, you should understand the concept behind the point and figure chart. Suppose, you are using the point and figure chart. You set the box size on the point and figure chart to be equal to 10 pips on the point and figure charting software.

X column and O column. In an X column, the price would have to move another 10 pips above each X box before another X could be added on top of that X. On the other hand, in an O column, price would have to move 10 pips lower than the each box in O column to add another O box on the bottom of the column.

The second important variable is the reversal amount. How do you decide to add another column to the point and figure chart? It depends on the reversal amount. This is the amount of pips the price needs to reverse before a new column is created.

The second most important variable for a point and figure chart is the reversal threshold. The most common amount of reversal threshold is three boxes or three points. A new column is only added when a reversal in an existing column exceeds the reversal threshold.

What should be the reversal threshold or the reversal amount before a new column is added? The reversal amount in pips is 30 pips if the box size is set at 10 pips and the reversal amount is set at three boxes. So in case of a rising X column, price would need to turn back by at least 30 pips before a new O column would be added.

By only focusing on the pure price action, a point and figure chart reduces the unrelated noise in the price action. These two variables the box size and the reversal threshold make the point and figure chart so effective at representing only the most major market moves disregarding all minor fluctuations known as noise. The significance of these two variables, the box size and the reversal threshold should be clearly understood.

One of the best trading strategies in most common use with the point and figure charts is breakout trading since point and figure charts outline support and resistance so well. The point and figure charts are excellent indicators of both trend and support/resistance.

A double top is a potential bearish reversal signal in bar and candlestick charts. Now you must understand that there is a notable distinction between the bar and candlestick charts and the point and figure charts in the interpretation of double and triple tops and bottoms.

Are you familiar with the chart patterns like the double and triple tops and bottoms? They are taken as important reversal signals in the trend. However, a double top is a resistance point where traders should be looking for a bullish break to the upside on the point and figure charts. The same difference holds for the double bottoms as well as triple tops and bottoms.

The main method of trading trendlines and pattern on the point and figure charts is through breakouts like the horizontal support and resistances levels on these charts. Charts patterns like triangles are prevalent as well. Point and figure charts also have their own versions of diagonal trend lines which are drawn at 45 degrees.

Point and figure charts give a very clear view of the market movements. Price action is the most important aspect of technical trading. The point and figure charts focus exclusively on the price action.

Point and figure charts had originated in the 19th century. Point and figure charts are still popular with traders today as an increasingly relevant analytical tool for forex traders. It is because of this clarity in viewing and interpreting the price movements that the point and figure charts have withstood the test of time.

Point and figure trading depends on the trendlines, support/resistance and breakouts. Point and figure charts excel at representing clear evidence of such important technical characteristics as trend, support/resistance and breakout without the extraneous elements to clutter the picture.

What makes the point and figure charts so special? Other data that is readily available on the bar and candlestick charts like time, period opens/closes are generally excluded on the point and figure charts. This leaves only the uncluttered purity of price action. Some may characterize point and figure trading as based upon pure price action.

Multiple Timeframe Trading

Have you ever traded multiple timeframes? No, then let me explain what multiple timeframe trading is. In multiple timeframe trading, a trader first looks at a longer timeframe like a monthly or weekly chart to determine the overall direction of the trend. Multiple time frame trading is a trading method used extensively by forex traders. It involves the use of multiple timeframes.

Professional traders always use multiple timeframes. Multiple timeframe trading means using three or more timeframes in your trading. You as a trader decide to drill down to a shorter timeframe like the daily or 4 hourly chart to look for dips or pullbacks in the trend if you find a decisive long term trend on this timeframe.

First identify the main trend on the long term chart. A minor downward retracement would represent a potentially high probability entry to get in the trend at a reasonably good price in a strong long term uptrend. Finally the trader may drill down to an even shorter timeframe like the 30 minutes or 15 minutes charts to pinpoint and time the exact entry.

Learn to use multiple timeframes in your trading. How do you trade multiple timeframes? Suppose, you are interested in trading multiple timeframes! You identify the retracement in an uptrend on a 4 hourly chart. What you need to do is to wait for a resistance breakout on a 15 minute chart in the direction of the trend before entering into a long position.

Trading is all about reading the charts correctly. Multiple timeframe trading can be very powerful if used correctly. What make multiple timeframe trading so powerful is that it puts the traders on the right side of the market while also identifying the highest probability entries available.

What is Triple Screen trading? Have you heard of the triple screen trading method? One of the multiple timeframe trading strategies is known as Triple Screen. A triple screen resolves the contradiction between the technical indicators and timeframes. The first screen is the long term charts and strategic decisions on long term charts are made using the trend following indicators. How do you decide what is long term? It depends on your favorite timeframe.

The second screen is used to make technical decisions about entries and exits using oscillators. The second screen is the intermediate charts. Suppose your favorite timeframe is the 4 hour chart. Call it your intermediate time frame. The third screen can be an intermediate chart or a short term chart. The third screen is used to place buy and sell orders.

How do you decide what is intermediate and what is long term? Begin by looking at your favorite chart, the one that you use the most. Call it intermediate chart. In our case, the intermediate time frame is the 4 hour chart. Multiply its length by five to find the long term chart. A factor of 4-6 is more flexible and practical. Our long term chart is a daily chart (4X6=24 hours). Now use trend following indicators on the long term charts.

Staying out of the trade is a legitimate position. Use these trend following indicators like the moving averages, MACD or trendlines in the long term charts to make your strategic decision to go long, short or stay out of the trade.

Return to the intermediate chart if the long term chart is bearish or bullish. Use oscillators like the Stochastics or RSI to look for entry or exit points in the direction of the long term trend. Set stops and profit targets before you switch to short term charts to fine tune entries and exits. To get at the short term divide the intermediate timeframe with 4-6. In our case, the intermediate timeframe is 4 hours, so the short term would be 1 hour charts.

On the short term chart look for the support/resistance breakout in the direction of the long term trend to pinpoint the trade entry! Use it on your demo account to get familiar with it before you trade live with the triple screen method. Triple screen is a simple but ingenious multiple timeframe approach to forex trading.

Forex Typhoon

Forex Typhoon is now LIVE and making money with Forex has never been so easy! See the proof for yourself here:

Forex Typhoon

Forex Typhoon has stormed onto the scene and is here to do all of your Forex trading for you! No more guess work, no more sliding losses, no emotion, and no hassles. Forex Typhoon brings Forex profits that will gain strength day after day after day, feeding on its own momentum and gathering even greater force and profitability – that’s why this system has been christened “Forex Typhoon”.

Forex Typhoon

It will strike the Forex market for you and make successful trading seem like a nice gentle breeze! Forex Typhoon is the brainchild of a Forex expert, and has turned the life around of so many people already! I have had the privilege to preview and play with this system, and I have to say that I was genuinely gobsmacked. The power of the forex typhoon system to bring in easy and consistent Forex Trading profits with very little effort on your part is staggering. You need to see the power of this automated system yourself:

Forex Typhoon

James, the first lucky recipient of this system who received it straight from the hands of a financial guru on the streets of Manhattan, by the Wall Street Bull no less, credits this Forex trading automated system with saving his sanity, his bank account, and his marriage. Yes, like you he was trying to boost his income through Forex trading, devouring every manual or guidebook that came his way, but he came very near to losing his shirt.

Forex Typhoon

Why?Because he was making emotional decisions, chasing his losses, getting distracted, and focusing only on the evidence before his eyes instead of being long-sighted in his trading. He knew there has to be an easier way, and a Forex guru heard his plea for a solution and handed him Forex Typhoon...

Forex Typhoon

Forex Typhoon has the capacity to truly turn your Forex trading around. I’d be lying if I said it involved zero work from you, because of course your hand needs to be on the tiller, responsive to your account balance and the direction things are going in. But you do not need to be the captain of the ship. Forex Typhoon will guide you to Forex success and profits with all the ease of an automated 007 speedboat, leaving everyone else baffled and envious in its wake.

Forex Typhoon

Forex Typhoon takes out all the hard work and frustration from the trading market:

*The software does all the trading for you, so it really does run on autopilot. You just switch it on, and then sit back and let it take over.

*The software locates trades for you, gets in on the trades and more importantly gets out when it knows it should. It will protect your bank account and your sanity, taking out the need for any second-guessing or emotional decision making.

*It will then monitor your trades for you to ensure profits can run as losses are kept super small. James, who is releasing this incredible system, will tell you that this is the key to being successful with Forex. He previously chased the “big fish” and just got burnt, losing everything he put in and more. But with Forex Typhoon, you get rich from increasing momentum, as initially small gains and profit ripples all build up into one giant tidal wave of cash. You won’t get rich from one trade, but you will enjoy serious Forex gains over time.

*Best of all, it only takes a couple of minutes to install and set up Forex Typhoon.

You can go and get started with this in just 5 minutes...

Forex Typhoon

If you get left behind and miss out on Forex Typhoon I don’t know what you’ll do with yourself. I have to stress to you that places are strictly limited, and the doors won’t be open for long. This automated offering for Forex success is going to be in hot demand, so you must act. It’s going to undertake all your Forex activities for you, leaving you with little to do but monitor your account balance and enjoy your successes.

Forex Typhoon

There’s no time to dither, you need to act quickly and decisively. Forex Typhoon is now LIVE, and if you’re ready to stop trading on emotion and stop washing gushes of cash down the drain, then you simply cannot afford not to get your hands of Forex Typhoon! Are you ready to turn your life around? I know I am! See you here:

Forex Typhoon

James WILL take this incredible offer down very soon, as he promised the Guru behind it not to flood the market with this powerful approach. Be one of the smart, lucky ones and race here now:

Forex Typhoon

Forex Bling

Forex Bling is a truly reliable forex robot developed by a hedge fund manager. Yesterday, Yohanes R. Gagahlin launched a new forex robot, 'Forex Bling'. Now...before you switch off mentally, read the following really well:

Forex Bling

-->This guy caught my attention. He had to and let me tell you why.
-->Yohanes is a real person with real Forex trading experience.
-->He regularly appears at very important forex seminars around the globe AND he also runs a successful fund management company called Switch Capital Management.

Forex Bling

No doubt about it... the real deal. But, to be honest, WHO CARES! Don't get me wrong... with his credentials, he's way above 99% of forex vendors out there. However, in forex robot trading, like I said previously, either show me solid, believable proof or get the Hell out! Well... after I saw what Yohanes had to provide when it came to proof, I was speechless but, more than that, excited. Why? Well, first lets see what the proof showed:

Forex Bling

* Over 200 trades in the past 2 months

* Over 98% accuracy rate

* Account doubling

* Very small losers

Seems a perfect forex robot, hands down. In today's forex market we have a HUGE problem (well, it's been like that for quite sometime to be honest)...I'm sure you know what I'm talking about but, if not, let me spell it out for you: There's so much S**T flying around that it's almost impossible to know and/or separate what's good from what's not... what works from what's a complete waste of time and money. Seems like any idiot today can just create a website then plug some useless forex robot and just get away with it.

Forex Bling

Bearing all this in mind... I developed a certain “alert mechanism” when looking at and judging a Forex robot. Well... to be honest, it's a one step mechanism: Either you can PROVE your robot performs well or you can't! And no, it's not enough to have a screen shot of a trading statement and write above it "live performance"! We all know that B.S. trick.vSo why am I telling you all this? Well... simply because I've been very impressed by something and I want to share it with you. But... if you've been reading my posts carefully then you understand that even that kind of information doesn't impress me anymore.

Forex Bling


And yes... after finding out that the proof really was real, I was quite impressed and excited. So, right now, you should probably be asking yourself how I verified the authenticity of the account statement? Well, have you heard of MT4LIVE? If you haven't, you should! What this website does is quite simple but quite effective... sort of separates the scammers from the real deals.

Forex Bling

MT4LIVE is an independent service that hosts account statements. In essense, they connect to your MT4 platform and stream the info they find there to a live web page. This means no possibility of fabricating results, 'photoshop'ing them, saying they are live, real money results when they aren't... etc etc. Yohanes uses this service on his website... every single trade you will see on the account is real... live, real money, the proof is solid... and yes, this is the next big thing! And when I say this is the next big thing, I mean every word of it...this system is GOOD! You can verify all this and learn more about Johanes' robot solution on his website here:

Forex Bling

So... bottom line, if you're like me and you're really fed up with B.S. and hype flying around then search no more... this is the real thing...this is what automated forex trading is all about. This is the very first robot method I've seen in a very long time that just spits out pip after pip on a daily basis, and with uncanny accuracy. A truly reliable automated income solution which leaves us thanking Johanes for his great work and contirbution to the niche.

Forex Bling

Forex Training Kit

I have a 3-part Forex training "kit" for you that's online RIGHT NOW...You may remember the post that I did last week on the Forex Risk Eraser, a new trading approach whose primary focus is not just to manage the risk of Forex trading, but to actually erase the risk completely and as soon as possible.

Forex Training Kit

This is some of the best complimentary Forex training you're going to see this year. And it's available by special invite only. You may have already seen Part 1, which was released last week & shows you how to "erase risk" on every Forex trade you make. Well, Part 2 was just released today & it reveals the 6 steps that you need to do to make sure you're AUTOMATICALLY protected when you trade...regardless of your experience level, the method you use, or the type of trader you are (day trader, end-of-day trader, etc.).

Forex Training Kit

And to make sure you really "get it", the entire process is mapped out on the 3rd part -- a slick "cheat sheet" that you can print out and keep by your trading computer, so there's no second-guessing. As a bonus, you also get an inside look at an actual LIVE Forex trade that puts this 6-step plan into action so you can experience "risk erasing" firsthand. This is some of the best "complimentary" Forex training you're going to see this year, and I don't expect it to stay online forever, so go ahead & get your hands on it here right now:(That link takes you to the private training website where Part 1 was posted last week. It's an "invite-only" link.)

Forex Training Kit

Forex Triad Webinar

Join Forex Triad Webinar tomorrow. Unless you have been living in a cave, you have likely been hearing TONS of buzz about the Forex Triad Formula over the last week. One of the free reports that was released was downloaded over 5,500 times the very first day it was released! However as you likely have realized, I have raised the bar even higher by releasing the "cheat sheets" I hope by now you've read them!

But in case you are wondering what the REAL story is, or if you are a bit skeptical and would like to interact with me and my partner live, tomorrow is your chance, however, these spaces really are limited.

Both myself and partner Anthony Trister have been bombarded with sO many questions (as you can imagine) about the system they we've decided to hold 2 live "tell-all" webinars tomorrow, September 10th before their in-boxes explode! We're going all out, and totally pulling back the curtains on Triad! You'll see it live, in action, and hear about all it's phenomenal and truly unique trading benefits.

You'll discover how long it takes most traders to get rolling with it, (it's a lot faster than you think!), and how many they are releasing (it is a limited number).

You'll also find out when it will be available, and for how long (it is a very limited release.) Plus and a whole lot more!

There is an astoundingly large number of VERY interested traders, and if you're anything like the other traders who have read the 60:30:10 Principal and grabbed the scalping "Cheat Sheets", your probably pretty darn curious to know a whole lot more about the Forex Triad system.

Get excited!! But don't miss your chance – we're doing this one day only. I'd register while you still can, because the available slots are almost filled up (we were approaching several THOUSAND registrations as of this morning).

Good Trading,
Jason Fielder

Divergence Trading

Divergence trading is one of the ways to trade the market. Though divergence trading is not often used but if used correctly it can be highly profitable. Divergences are often used as important trading signals. But it doesn’t mean that divergences will always predict a reversal correctly. Price oscillator divergences have long been acknowledged by technical traders as a solid indicator of potential price reversals. Well defined divergences particularly on the long term charts can be surprisingly accurate in many instances.

Have you used divergence before in your trading? In case no than let’s me illustrate what a divergence is. Price divergence oscillators can be spotted with just two elements on the price charts. Catching a major price reversal at the correct time can be so profitable that only a few accurate divergence signals are needed to offset the inevitable false signals.

How do you determine a divergence? There are two elements in a divergence. The first element is the price and the second element is an oscillator that runs either above or below a price level. This second element can be Stochastics, RSI, MACD or any similar oscillator.

Many traders use Moving Average Convergence Divergence (MACD- pronounced McDee) as their sole confirming indicator. The MACD is among the most popular technical indicator or an oscillator invented.

MACD acts as a sign of trend momentum by representing the relationship between two moving averages. MACD is a multifaceted indicator. Some traders also take trading signals exclusively from MACD.

You must have used MACD in your trading. MACD is basically the difference between two moving averages. MACD can be traded by taking signals from the crossovers of two lines, crosses above and below the zero line. Relative Strength Indicator (RSI) is another popular oscillator that provides a measure of price momentum.

RSI is an indicator that gives overbought and oversold signals in ranging markets. RSI may also be used for divergence purposes. However, its usefulness like most other indicators tends to diminish during a trending market. Stochastic indicator may also be used for divergence trading.

Technically speaking what is a divergence? When there is an imbalance between the price element and the oscillator element a divergence occurs. This is the point when the oscillator is providing a strong hint that price may be losing its momentum and a change in price direction may therefore be impending. Both the price action and the oscillator begin to go separate ways and start telling opposite stories.

There are two types of divergences. A bearish divergence occurs when the price hits a higher high while the oscillator hits a lower high. A bearish divergence is a hint for an impending reversal back down.

What does a bearish divergence means? It is an indication that price may soon turn and go back down as the higher high in the price may lose its momentum and begin falling in case of a bearish divergence.

A bullish divergence is an exact opposite of the bearish divergence. A bullish divergence occurs when price hits a lower low while the oscillator hits a corresponding higher low. A bullish divergence hints at an impending reversal back up.

Divergences can be a remarkably effective method for helping to time major market events when used in conjunction with other trading tools. Divergences are often used as hints of possible turns and reversals. However, divergences are not frequently used as a full fledged self sufficient trading strategy.

Fibonacci and Pivot Point Trading

Traders frequently use the Fibonacci retracement levels and pivot points in their trading. Many day traders are diehard fans of the Fibonacci retracement levels and the pivot points. The use of Fibonacci retracement levels and pivot points are often considered by their adherents as complete, self contained trading strategies. Why some traders are diehard fans of the Fibonacci and pivot point trading? Continue reading the article to know why!

Don’t confuse the two methods as one. I want to make it clear the Fibonacci Retracement and the Pivot Points are two different methods and must not be confused as a single trading method. Both produce mathematically derived support and resistance levels that traders may use either as indicators of possible retracement turns or as zones to watch for breakouts. The horizontal price levels that are generated through Fibonacci retracement levels and the pivot points are calculated using different methods and formulas.

Why Fibonacci retracement levels and the pivot points work most of the time? One question that might bug your mind is that why these Fibonacci retracement levels and pivot points work in the market. What is the secret behind this? What makes these tools work surprisingly well under diverse market conditions is the simple fact that many traders both small and large use Fibonacci retracement levels and pivot points in their trading.

Markets are just people like you and me buying or selling. In our case, trading again buying and selling securities or currencies! Once people start believing in something, it starts getting reflected in the market price action. This is why significant price action occurs around these levels due to the fact that many traders are watching and reacting to these price levels. Therefore the levels derived from these two tools become self fulfilling prophecy.

When the majority does the same thing, it starts effecting the market movement. This phenomenon contributes to the Fibonacci retracement levels and pivot points frequent effectiveness and accuracy in describing the market movement. The most common Fibonacci retracement levels are 23.6%, 38.2% and 61.8%. These three Fibonacci retracement levels are most frequently followed by the traders.

As said above, Fibonacci retracement levels are very popular among the traders. There is a full fledge Fibonacci trading method. You will hear very often, the commentary on CNBC or Bloomberg that price is approaching the 38.2% retracement level and something important like a turn could occur at this level. This shows the popularity of Fibonacci retracement levels among the trading community.

Both Fibonacci retracement and pivot point trading methods have clear cut locations for the stop loss placement similar to most support/resistance trading methods. Fibonacci retracements can be traded either as a breakout opportunity or as a retracement bounce. Fibonacci levels can also be used as profit targets for existing open trades.

Most of the technical indicators used in technical analysis are lagging in nature. Pivot points are leading indictors of the price action in the market. This makes them very useful for the traders. Pivot points are derived mathematically from the previous day’s data that includes the previous day’s high. Low and close. The main pivot point (PP) is calculated by taking the average of the high, low and close of the previous days’ price action.

After calculating the main pivot point (PP), four other primary pivot points are calculated from the main pivot point (PP). Two are below the main PP. Two are above the main PP. The levels above are R1 and R2 where R stands for resistance.

You can still use the main pivot point (PP) as the only number in your trading but traders who frequently use pivot points in trading have refined these numbers into more sub-numbers. The two levels below the main PP are the S1 and S2 where S stands for the Support. Often these pivot points are further extended to R3 and S3. You can easily find a pivot point calculator online. Most of the charting software also can calculate the pivot points.

Many trader use pivot points in their trading! Pivot point trading can be a highly profitable trading method. However, it is always good for the trader to know how these pivot point numbers are calculated. This will give the trader an understanding of how these numbers are calculated and what are the variables that are used to calculate them.

There are a number of pivot points that you need to calculate. How is the pivot levels calculated? Beginning with the main Pivot Point that is calculated from the previous day’s key price points, the resulting support and resistance are subsequently derived from the following calculations:

Resistance 1 R1 = 2PP- Previous Low. Resistance 2 R2 = PP + (R1-S1).
Resistance 2 R3 = Previous High + 2(PP-Previous Low).

Main Pivot Point PP = (Previous Low + Previous High + Previous Close)/3.

Support 3 S3 = Previous Low-2(Previous High –PP). Support 2 S2= PP- (R1-S1). Support 1 S1 = 2PP – Previous High.

The main pivot point is very important. After calculating these pivot points they are plotted on the currency price chart. Trader’s can calculate the current day’s pivot points using the above formulas based on the previous day’s price data.

Breakouts or bounces may be traded with pivot points. Once these pivot levels are calculated and plotted, they are used in much the same way as Fibonacci Retracement.
These pivot points are often also used as profit targets. Pivot points also indicate whether the market sentiment is bullish or bearish. Traders also use pivot points as reference levels to provide information as to whether the current price is relatively low or relatively high within its expected price range for the day.

S1, S2 and S3 as well as R1, R2 and R3 are used as references in pivot point trading. For example, traders may look for long trading opportunities with the view that the price will reasonably move towards equilibrium around the main PP level if the price is near the day’s S2.

Many traders use different time frames in their trading decisions. You can also calculate the pivot levels for a week and for a month time frame too. Instead of calculating the pivot points for the current day you can also calculated the above levels for 4 hour charts as well as 8 hour charts.

When calculating the pivot points for the other time frames just replace the day’s highs, lows and the closing prices with the appropriate time frame highs, lows and closing prices. Both Fibonacci and Pivot Points are excellent technical tools that often encompass entire trading discipline in themselves.

The pivot point can become the target low for the trading session in an extremely bullish market condition. This number represents the true value of a prior session. It is important to understand that especially in strong bull or bear market conditions, it can be used as an actual trading number in determining the high or the low of a given time period.

Traders will step in and buy the pullback until that pivot point is broken by prices trading below that level. A retracement back to the pivot will attract buyers if the market gaps higher above the pivot point in an uptrending market. The opposite is true for the pivot point will act as the target high for the session in an extremely bearish market condition.

Technically speaking, in a bearish market, the highs should be lower and the lows should be lower than in the preceding time frame. Generally prices come back up to test the pivot point if a news-driven event causes the market to gap lower after traders take time interpreting the information and the news. Sellers will take action and start pressing the market lower again if the market fails to break that level and trade higher.

Weird Forex Secret

Bill Poulos on and off keeps on giving great tips on forex trading. Last time he had given his Forex Risk Eraser method free. Now he is giving another of his forex secrets. Whatever Bill says, you must always pay a lot of attention to it. He has been trading for the last three decades. He has a number of bestseller courses on trading including Forex Income Engine and Forex Profit Accelerator.

Forex Income Engine is for day trader while Forex Profit Accelerator is for swing traders. He is about to release another brand new course on forex trading with the name, "Forex Time Machine." I will keep you posted about this new course. Expect something ground breaking from him. In my opinion Bill is one of the best forex trading mentors.

If you're still losing money trading Forex, then you need to see this brand new, complimentary training video fresh from the recording studio of one of the most respected Forex trainers Bill Poulos around. In it, Bill reveals the REAL REASON most traders just like you keep on losing... and then shows you, step-by-step, how you can FIX any trading method you're currently using.

Once you see what it is, you might think it's a little "weird", but after I saw it I was surprised more struggling Forex traders haven't been told about this. Here's a hint:

* It's all about how to "--A-- -I--".

Once you figure it out, you'll be surprised you ever traded without this technique. Go here for your "invite only" access to a brand new, private training site where you can see this video:

Weird Forex Secret

Make sure you watch it today. This is definitely one of those time-sensitive videos that I don't expect to stay online forever.

Area 51 Forex

Wow, just when I though I'd seen it all...I just saw a video with PROOF of a legit REAL professional trading system developed by hedge-fund traders that's helping regular guys doing stuff like...

...247 pips in one trade...
...doubled my account...
...$1,220 in my first day... $4,700 in a week...
...TRIPLE My Account...

Take a look at the video:

Area 51 Forex

This isn't some flash-in-the-pan trading system that's going to be gone next month. This is a real pro-level trading system that cranks in crazy cash month after month. And it's the kind of forex system that ANYONE can use...Now I will warn you - the video shows proof from several regular guys, and they aren't all doing that kind of money. One of them is "only" doing $4,700.00 a week. But this is serious stuff...take a look now:

Area 51 Forex

I know you get hit with "offers" every day. Well this isn't one of them. There is nothing for sale at that site... just a couple of guys sharing some serious success that just about anyone could copy:

Area 51 Forex

My inbox is full of nothing but crap. Non-stop hype, bogus "systems", and outright lies. It seems like every day there's another "launch" of some expensive piece of BS forex system by some self-proclaimed "guru" - and the guy probably just started last week. It pisses me off. So when I see a REAL, WORKING Trading System - something that isn't some three-week wonder that's going to blow up next week, then I sit up and take notice. The next thing I do is look for PROOF - the real numbers that back it up.

Area 51 Forex

The video is free, and they are promising some more free videos that show everything step by step. We will see if they hold up on their promises... but this first video is a shocker! I'm sure these guys are going to try to sell something at some point, but until they do I am going to suck up every bit of their "secret sauce" that I can. Here's the link:

Area 51 Forex

60:30:10 Principle-Markings of Trading Genius

What is 60:30:10 Principle? It's amazing...When you've been trading as long as I have you've pretty much seen it all. You might say I'm even jaded when it comes to the next "big" trading idea. But I have to admit, once in a "very" blue moon, something comes along that just makes me scratch my head and go wow.

60:30:10 Principle

As a trader myself I keep in close contact with the other big guns in the industry, and two of them that you may have heard of are Jason Fielder, and Anthony Trister. Jason has just released a Special Report that while so incredibly simple to grasp,has the markings of trading genius written all over it.

60:30:10 Principle

In fact the moment you read it and see what I'm talking about, the light bulb will undoubtedly go off for you, just as it did for me. Jason's all new, truly groundbreaking report is called "The 60:30:10 Principle" and it will INSTANTLY make you a more accurate Forex trader... after your very first read. Sound like hype? It isn't.

60:30:10 Principle

On top of all this Jason is actually giving away (2) systems that you can use
immediately to trade during market conditions that literally have most traders
running scared.And the best part? He's allowing me to offer you a copy "on him" for a short while before he removes the web page. I'd suggest you hurry.

60:30:10 Principle

Pattern Trading

Pattern trading can be sometimes very profitable. However, first you should be well conversant with the different chart patterns. There are basically two types of chart patterns. One are the chart patterns that generally represent price consolidation and include patterns like triangles, flags, pennants, wedges, rectangles and the head and shoulder pattern among others. Pattern trading may be considered one form of breakout trading.

These chart patterns are mostly a signal for a breakout or a continuation of the existing trend. For the most part these chart patterns are traded when a breakout of one or another kind occurs. There is a famous head and shoulder shampoo also in the market. You might be using one. Don’t confuse the head and shoulder with the name of a shampoo. It is a chart pattern that you must be familiar with if you want to continue reading this article otherwise first make yourself clear about these chart patterns and then continue reading this article.

Now it should be clear which chart patterns constitute a continuation pattern and which chart patterns are considered reversal patterns when we talk of pattern breakouts. The second type of chart patterns that are the Japanese Candlestick patterns! Candlestick patterns are not tied as closely with breakout trading.

Trend reversal means a breakout and a profitable trading opportunity. What chart patterns constitute a trend reversal? The most common chart patterns found on the currency charts that are generally considered to be reversal formations include double tops/bottoms, triple tops/bottoms and head and shoulder tops and bottoms.

A continuation pattern means that the trend is going strong and the chances of its reversal are small. When a continuation pattern approaches breakout on the side of the pattern that would denote a continuation, technical traders patiently wait for a breakout. The most common chart patterns that are generally considered to be continuation patterns include flags, pennants, triangles, wedges, rectangles and others.

Pattern trading is like playing with shapes and is very similar to the general support/resistance breakout trading in terms of entries and exits. One benefit of pattern trading lies in the precise profit targets. This type of trade is treated as a breakout trade with similar type of entry and stop loss placement as with standard support/resistance breakout trades.

Profit target in the head and shoulder pattern is derived by measuring the height from the top of the head to the neckline then projecting that height from the neckline breakdown for the profit target. The traditional signal for the trade in the head and shoulder pattern is after that price breaks the neckline. So a good example of a precise profit target is that of the head and shoulder pattern.

In actuality, any type of breakout of these patterns whether in the direction of the continuation or reversal is eagerly watched traded event. Similarly the height of the rectangle is projected up or down to derive the profit target after the breakout in case of the rectangle consolidation pattern. Triangles, flags, pennants and other chart patterns also have convenient build in profit targets.

Japanese candlesticks have recently become popular among the western trading circles. Steve Nison is considered to be the authority on Candlestick Charting. Candlestick patterns are most often used as important trade confirmation tools in conjunction with other technical indicators. Candlestick patterns in themselves are not usually considered as sufficient trading signals.

There are a number of candlestick patterns both simple and complex that can be used. For example, it should not be taken as a reversal signal to buy low if the hammer candlestick pattern occurs after a steep well defined down trend. However, if this hammer candlestick pattern occurs right at a well established support level, the hammer candle may be taken as a strong signal that a potential long trade may be profitable. You can download your 82 page candlestick guide with strategy flash cards free.

Stop Loss Trade Rules

You need to lean how to position your stop loss in relation to the market activity in a trade. Placing arbitrary stops in a trade is not a good idea. Many traders incorrectly choose a stop so their loss is the same amount each time they are stopped out. Don’t pick an arbitrary place to put your stop loss.

You are completely disregarding the meaningful market support and resistance levels where the stops should be placed if you use an arbitrary place for your stops. You need to place the stops in accordance with the market conditions.

Is there any rule that can tell you where to put your initial stop loss? Where to place your initial stop loss? Try to set your initial stop 3% below the support level. The important thing in this method is to correctly identify the support area. Test this method and see if it works for you.

Support and resistance is a concept that every trader should understand. Knowing correct support and resistance is very important for a trader. This you will learn with experience. For example, suppose you have a trading system that can determine an entry point. However, your trading system does not provide an exit based on the market dynamics. First you need to identify the support area. Set your stop loss 3% below the support area.

The formula that you will use is (Support Price)*0.97(3% less) = Initial Stop Loss. For example, suppose that the support level in a bullish trend is $30. You should set the stop loss at 3% below the support level in a bullish trend if you have an area of support at $30. The formula that you will use is $30 (support price)*0.97 (3 percent less) = $29.1 (Initial Stop Loss Level).

Never disregard current market conditions it will affect your profitability seriously. For example to say that you are willing to lose $200 in a trade is to disregard the current market conditions. Do not use arbitrary stops based on flat dollar amounts that you are willing to lose.

You are inviting failure if you do not use stops at all. Another good approach to place stop loss can be to set your stop loss one tick below the support in a bullish trend or one tick above the support in a bearish trend.

It is foolish not to use a stop loss. For example in trading stocks, you are in trouble if you do not use stops and hang on to a losing trade to the point that you emotionally feel that the loss is so large that you cannot exit the trade.

Some markets have sharks in them. For example in the currency market, the brokers have many tricks up their sleeves. In the currency market it is better not to put the stop actually in the market when you have the position on. Some professional currency traders use mental stops only. Your broker will see your stop and if there are enough similar stops, the broker may try and hit your stop. This way the broker makes money and you do not.

You need to become a disciplined trader. Using a mental stop will need psychological toughness and discipline to get out when you are supposed to get out. You can set a mental stop and get out quickly if you are hit in such a market like the currency market.

You can move your stops to lock in profits as new trailing stops are determined. You must adjust your stops to keep your risk in relation to your trade size in case you add on to your winning trade by increasing your trade size. Never move your stop for emotional reasons especially when it is your initial stop.

Learn how to place the stop loss correctly. As the trade progresses learn how to move the stops. Always move the stop closer to the current position to lower the risk in relation to your larger trade size when adjusting your stop due to an increase in trade size.

There is a relationship between the trade size and the stop loss. Always move the stops closer to your current position when adjusting your stops due to an increase in trade size. An increase in trade size is usually caused by adding on or scaling in to a winning position. This lowers the risk in relation to your larger trade size.

When you trade, always try to develop an overall picture of the market using multiple time frames. As a rule, always set your stops on the same time frame as you entered your trade. Many traders want to know about moving stops based on different time frames. For example, if you had used a daily chart to enter your trade, use the daily chart to set your initial stop.

Day traders don’t trade overnight. Each day is full of action but when the night comes peace prevails. For day traders there is a risk when holding a trade overnight. In day trading, you are supposed to close your position at the end of the day. Sometimes an opportunity arises and you decide to continue the trade overnight. There is always a possibility of unforeseen event occurring during the night.

There will always be one time frame that is your hot favorite. Suppose you are trading a 15 minute time frame. Therefore your stop loss and position size are based on the 15 minute time frame. In stock trading, unexpected event may create a gap open. This may adversely affect your account value.

Sometimes an unexpected opportunity raises its head when you are about to call it a day. Your trade is profitable and you see much more profits if you hold the position overnight based on your 15 minute chart 5 minutes before the close of the day. How do you decide to take the decision to let the trade continue overnight?

When deciding whether to let the trade continue overnight, consider the following 5 rules. 1) The 15 minute chart must indicate a solid trend in place. 2) You should place a new stop loss based on your daily chart. 3) The trade must currently be profitable. 4) Your risk should be no more than 2% of your trading account based on your new adjusted stop from the daily chart. Reduce your trade size. 5) When the market opens the next day, be sure to monitor your trade.

The most common thing that can happen in case of a poorly placed stop loss is that you will get stopped out on a correction. After being stopped out, the market will race back in the direction you were initially betting on. Continuously tweak your trading strategy to get the maximum returns. It is crucial from the profit point of view to refine your strategy. The more profitable you will be, the better your stop strategy is.

There is no way to time the market perfectly. Your goal should be to get the probabilities in your favor by choosing a risk/reward ratio of at least ½. This risk to reward ratio will also tell you about the placement of your initial stop loss. Now you should keep this in your mind that there are no perfect stops. Just don’t forget, getting repeated stopped out will add to your commission fees and spreads making your trading cost higher.

Market is a living breathing entity in continuous motion. The market goes in one direction. It has a correction. Then it continues back in its trend direction. It has another correction and so on. Even in sideways or choppy market, there are ups and down in the price action. The market is always ebbing and flowing. It’s like the waves in an ocean.

You should learn how to ride these waves. You need to understand how the price action in a market takes place. Price action in the market is like the continuous ebb and flow of the tides. You must learn to ebb and flow with the tides in the market. Setting stops on the key levels of price support are crucial. These key support levels represent significant market realities occurring with enough trade volume to warrant a stop loss level.

There is a continuous ebb and flow in the market. Even in case of a perfect trend this ebb and flow is superimposed on the trend. How do you reduce the possibility of getting stopped out of a perfectly good trend by the normal ebb and flow of the market? The market will continuously fluctuate. The answer lies in the current price, volume and volatility of the market.

What should be the role of the stops in your trading? The stops need to protect you from risk but they also need to allow the market freedom to fluctuate. Meaning stops should reduce your risk but not your profits. You will need to ensure that your trading system and approach take these factors into consideration so as to allow your stops to ebb and flow with the markets.

The market will tell you where to set your stop loss if you know how to listen to the market. To choose a random exit that does not include the crucial information the market is giving you at any time is ignoring what the market is telling you.

First learn to understand the market dynamics. Then you need to learn how to identify the correct stop loss based on the market dynamics. Then learn to adjust your trade size to manage your dollar loss. Never ever use an arbitrary dollar amount like, “I will get out of the trade when it goes against me $200.”

How many risks there can be when you enter a market? A stop loss protects you from different types of risks. The value of having the stop loss in place prior to entering the market is that you can unemotionally determine the best exits possible for the different types of risk like the trade risk, the market risk, the liquidity risk, the margin risk, overnight risk and the volatility risk.

As a rule don’t try to risk more than 2% of your trading account in a trade. The position of your initial stop should be based on the rule of 2% risk on your trading account. Your stop loss position is determined by how much risk you are willing to take. For some advanced traders it is sometimes beneficial to risk more than 2% of their trading account on a single trade. However, the amount these traders risk must be carefully calculated depending on their proven historical performance statistics.

Remember the saying that there should be some method to your madness. Learn the yin and yang of trading. Placing stop loss correctly in a trade is an important part of the money and risk management program. One of the greatest challenges for any trader is to finally come to the point where he/she firmly believes that a sound money and risk management program is vital.

Universal Market Trader

Have you heard about the Universal Market Trader Signal Service? I always say that Netpicks has the most successful and hardest working out there. They're 'in it to win it' and don't let a few small losses get to them.

Universal Market Trader

If you're all about the big picture (meaning, you WIN more overall than you lose!) and are willing to put forth the effort for a potentially huge payout, than I can already tell that you're going to fit in well around here). Regardless of if you're considering the Universal Market Trader System or one of other Netpicks outstanding Live Signal Services, if you're willing to supply the gumption, Netpicks going to support you till the very (hopefully profitable!) end. And if it's a phenomenal signal service you're after. Here, just read what traders just like you have to say...

Universal Market Trader

"The obstacle for me has been deciding what and when to trade. All other systems I've tried have been too complicated and required skilled interpretation. With Universal Market Trader Simple it's all laid out on the chart - all I have to do is place the trades and manage them. Couldn't be easier.

Instead of spending weeks or months wading through a mountain of instructional material, I was trading live within a couple of weeks so I'm already on the way to my goals. The programme is so easy to learn and inspires confidence, so I'm much more relaxed and can concentrate on trading." - Richard

Universal Market Trader

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Universal Market Trader

Stop Loss Orders

Know different stop loss orders! Never ever trade without a stop loss order in place, this is the most important lesson a trader needs to learn from the very start of the trading career. Risk management is an important part of any trading decision. One important way to control your trading risk is by setting stop loss exits. A stop loss order is a practical tool used in risk management. However, there is an art of developing the right stop loss exit strategy.

Placing your stop loss order requires fine tuning on your part. On the one hand, you don’t want to get too liberal with your stops that you never lock in a profit. On the other hand, you don’t want to set too tight stops that you constantly get bumped out of the market.

Entry and exit for each trade is very important. Your exits must be carefully coordinated with your entries. The topic of setting stop loss exits generally falls under the heading of trading systems. This is a trading skill that you can only learn with experience.

Setting a proper stop loss is going to make a lot of difference in your trading system success or failure. How many stop loss orders you can use in trading? There are a variety of stops that you can incorporate into your trading system. The following sevens are the most valuable stop loss orders:

1. Initial Stop Loss Order:
Whenever you enter a trade, put a stop loss order first. It is the largest loss that you are going to take in the current trade. This stop is identified before you enter the market. This is the first stop set at the very beginning of the trade. The initial stop is also used to calculate your position size.

2. Trailing Stop Loss Order
Using trailing stop loss orders is a good idea. This stop trails the price action. A trailing stop locks in profits when the price action is reversed. Trailing stop loss orders develop as the market develops. The trailing stop lets you lock in profit as the market moves in your favor.

3. Resistance Stop Loss Order:
Trend is your friend as long as you ride it in the right direction. A resistance stop is placed just under the countertrend pullbacks in a trend. This is a form of a trailing stop used in trends.

4. Three Bar Trailing Stop Loss Order:
Every trend is bound to reverse at some price. Many traders can’t anticipate a trend reversal and lose the unrealized gains when there is a sudden trend reversal. This stop is used in a trend when the market seems to be losing momentum and you anticipate a reversal in trend.

5. One Bar Trailing Stop Loss Order:
Use this stop after three to five bars move strongly in your favor when the prices have reached your profit target zone. This stop is used when there is a breakaway market and you want to lock in profits.

6. Trendline Stop Loss Order:
Use this stop when you are riding an uptrend or a downtrend. You always want to get out when the prices close on the opposite side of the trendline. Use a Trendline Stop placed under the lows in an uptrend or on top of highs in a downtrend.

7. Regression Channel Stop Loss Order:
A regression channel usually represents the width of the trend channel. A regression channel forms a channel between the highs and lows of the trend. Stops are placed on the outside of the lows of the channel on uptrends and outside the highs of the channel in downtrends. Prices should close outside the channel for the stop to be taken.

You always need to put your stop loss orders in accordance with the underlying market conditions. Try to overcome your fear and place your stop loss orders at reasonable places in the market. If you find yourself being stopped out too frequently or if you seem to be getting out of the trend too early then most probably you are trading with a fearful mindset.


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Trading Success Story

This will truly be one of the most fascinating posts you will ever read. Not only that, this will be one of the most important posts you will ever read. And believe me... if you don't "get it" from this post... you never will.

Trading Success Story

Follow Along As I Tell You A Little Story...Once upon a time in a land far, far away, there was a poor disgruntled employee. He worked for a horrible King who only ever thought of himself. He always dreamt of taking that giant step of owning his own business... but alas... the poor employee never seemed to get a break, he was too unsure of himself to take that big step into the scary world of the self-employed. Every night, the poor employee would go home, but his work didn't stop there. Between the children, his wife and the house there just seemed to be no time left for himself. Not only that, it always felt like he never had money, even worse, he owed so much money it seemed an impossible task to ever clear his debt.

Trading Success Story

The only special thing the poor employee had in his life was his passion for trading. Even though he was exhausted at the end of every night. The thing that kept him going was to switch on his charts and watch the markets for an hour. He intuitively knew there was a code, a hidden message, a secret yearning to be revealed to him. At times he felt he almost had it and at other times, it felt hopeless. Then, when just about all hope was gone, he found it. He found the one thing, the one place, the one group of people who were just like him. What's more, they have taken that big bold step of becoming professional traders and his dream became alive again. From that day on, he couldn't wait to get home. He was so full of life, so energized and enthusiastic about his new group of friends that it was all he could think about.

Trading Success Story

Slowly, as he got to know the group he asked a few questions but soon he couldn't hold himself back. He had hundreds of things to ask. Then all of a sudden,he knew, this is where he belonged. But here's the funny thing, it wasn't hard, it wasn't scary, in fact it was very simple to learn how to trade. Here's another funny thing, he was nervous when he handed in his resignation, I guess old habits die hard, but he knew in his heart of hearts that this was the right step to take. Now, a few months along, he watches from the window as the other poor employees drive to work every day and he hopes one day that they to will find a dream and make it happen.

Trading Success Story

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Trading Success Story

Good trading
Mark McRae

Market Cycles

What are Market Cycles? Never heard about the market cycles! Not knowing the market cycle can affect your trading. Knowing the major market cycles is important for you and your trading system. Each market cycle requires a different approach from your trading system. There are four major market cycles. Adapting to market cycles can improve your profitability. So you need to understand how to determine market cycles if you want to become a successful trader. Let’s discuss these market cycles now. The four major market cycles are:

1) Trending,
2) Consolidating,
3) Breaking out of a consolidation and
4) Corrective.

Remember the saying, “Trend is your friend.” Trending is when the market starts to move consistently in one direction either up or down. How a trend is inherently defined? A trend can be defined as progressively higher lows and higher highs. If price movement consisted of a straight line either up or down, identifying a trend would obviously be too simple. In reality, currency prices move around incessantly, often denying the technical analyst an easy trend read. There are primarily three modes of price movement that can be readily identified. They are uptrend mode, downtrend mode, and non -trending (sideways) or consolidation mode.

A Consolidation market also known as Non Trending market will look like a sideways horizontal line on a chart. Consolidating is when the market is struck between two horizontal support and resistance levels. You can use moving averages or other technical indicators to determine whether the market is consolidation or trending. In case of a consolidating market, the moving average line will almost be horizontal.

Now what is breaking out of a Consolidation? After the market has been consolidation for at least 20 bars Breaking out of a Consolidation is when there is a sharp increase or decrease in the price.

And the last market cycle is the corrective cycle. Corrective is a short sharp reverse in prices during a longer market trend. Many traders also use Elliott Wave Theory to determine waves which are also an indication of market cycles In addition to these four market cycles.

Elliott Wave Analysis is a full subject in itself. Some traders don’t believe in Elliott waves while others are its die hard fans. However, using Elliott Waves is somewhat advanced for most traders. There are five Elliott waves and each one has its own relevance in determining the trading strategy. You need to have a thorough understanding and ability to correctly determine which wave the market is in at that point.

You need to learn how to correctly a market cycle. For example suppose the market is only in consolidation and you incorrectly determine that the market has entered a trend. Incorrectly identifying the market with either the four market cycles or by using the Elliot Waves can be a costly mistake.

How can you learn to determine the market cycle? Your best plan of action should be constant observation. You might enter a trend trade and get immediately stopped out. Market experience is the best teacher and only overtime you will be able to correctly figure out the market cycle.

When you trade, you base your trading decisions on technical indicators most of which are lagging. Hindsight is always perfect but trying to predict the markets can be an elusive and impossible endeavor. Right side of the chart is always an unknown quantity for the trader until it reveals itself.

Remember spring, summer, autumn and winter, the four seasons of a year. The markets have four cycles just as there are four seasons in a year. You need to learn what the different market cycles are in addition to having a trading system. That means you should develop the skill of correctly identifying the different market cycles at the right time.

If you want to become a successful trader than you should be adapt at identifying the market cycle. Effectively identifying the market cycles is a skill that all successful traders have mastered. You need to learn how to adopt your approach to those cycles to remain profitable. For example in a choppy, sideways bracketed market, you need to adopt your system and rules so that you do not get whip sawed and stopped out a lot.

Selecting A Trading System

Selecting a trading system is not easy. Selecting a trading system is better or developing one? As a trader you will need to develop your own trading system. You need to test your trading system overtime. Why you need a trading system? You need a trading system to make sure that your trading decisions are not arbitrary and based on your whims or emotions. A trading system will make your trading almost mechanical and emotion free. When selecting a trading system, first try to paper trade it. You need to paper trade your trading system to get the bugs out. Paper trading is not a substitute for live trading but still you can assume that 75% of the results that you achieve in demo trading can be replicated in live trading.

Money management plan for your trading system is a must. A good money management plan will tell you how much you should risk on each trade with that trading system. For that to know you need two ratios. Win ratio and the payoff ration are two highly important figures to know for any trading system. Use the results of these paper trades to calculate your win ratio and payoff ratio. Determine what your personal win ratio and payoff ratio are in using that trading system over time.

The trading system, your money management system and you yourself, all three of you have to gel together. Now in the case of a successful trader, it takes three to tango here. The more profitable you will be over time, the stronger and more developed the relationship is between the three of you. So you have to develop not only a trading system but also a money management plan that suits your personality.

So for you to become a successful trader, a trading system is not enough. You need a good money management plan as well. Win ratio and the payoff ratio are required in developing a sound money management plan that will work hand in hand with that trading system. What can be the best parameters to selecting your trading system? When selecting your trading system, use these five parameters:

1) The trading system that you select is analytical and not whimsical based on your emotions. Trade entries in the trading system are defined by market price activity, key support and resistance levels, volume and volatility dynamics and not on random and spontaneous decisions.

2) Never ever enter a trade without first putting a stop loss in place. Some new traders don’t do it and get their account blown out in minutes. Before you enter the trade, the trading system is supposed to tell about the stop loss. The initial stop loss exit is determined before entering your trade.

3) The trading system that you select is rule based. Just like the trade entries, the trading system determines the trade exits by market price activity, key support and resistance levels, volume and volatility dynamics and fundamental rules, not on any arbitrary dollar loss that you feel comfortable with.

4) A new trader should always paper trade in the beginning. But the importance of paper trading for experienced traders does not diminish in any way either. You must not underestimate the importance of paper trading though it is not a substitute for live trading. Your trading system has been adequately paper traded or live traded and you have determined your personal statistical performance. You need to know your win ratio and the payoff ratio.

Win ratio and the payoff ratios are two number that are personal to you and your trading system. Some traders would like to use the win ratio and the payoff ratio achieved by the other traders. Do not rely on the results that the other got with that trading system. Use the actual results that you attained while using that trading system in calculating your win ratio and the payoff ratio.

You can use a computer in testing the performance of a trading system. Again do not delude yourself by thinking that computer back testing can give you your win ratio or payoff ratio. Do not try to rely on computer back tested results. Your personal performance results are the real results that matter. You cannot depend on computer results and other trader’s results.

5) Your trading system should be mechanical and rule based. Your trading rules should be written out step by step in sequence so that the entries and exits are consistent, clear and above all quantifiable. This makes your trading mechanical and emotions free. This is very important.

One perfect example of a rule based trading system is the Turtle Trading System. Have you ever heard of the Turtle Trading System? You must read the story of the Turtle Trading Experiment. Turtle Trading System was developed for the commodities futures market.

The story of Turtle trading rules is very interesting. You must know the story of Turtle Trading Rules. The creators of that trading system had a discussion one day. One master was of the opinion that great traders can be made. The other master said great traders are only born.

Both the great masters had a bet. Advertisements were placed in the Wall Street Journal and the Barrons. After short listing, a number of completely new traders were selected to teach them those rules and see if they could become successful traders. Many succeeded with the turtle trading system and became highly successful traders. But only those succeeded who had the discipline to consistently apply the Turtle Trading Rules while trading.

Develop A Trading System

You need to develop or adopt a trading system. Without having a trading system, you won’t be able to make a consistent level of profits in the market. Do you have a trading system that tells you when to enter the market? Let’s assume that you already have got a trading system that tells you where to enter the market. Does this system also tell you where to get out before you enter the trade?

Stop loss plays a very important role in risk and money management in trading. On the road to profitability, let’s start by agreeing that we need stop loss exits. In other words are you taking the market conditions into account and willing to give your trade a breathing space so that you don’t get whipsawed or repeatedly get stopped out. Trading cost is an important factor in your trading that many traders tend to ignore. Most take it as the inevitable cost of doing business. Just don’t forget, the more trades you place, more commissions or spreads you will have to pay and the higher your trading cost will be. After this agreement on having stop loss exits, we need to determine how to effectively select stop loss exits to avoid excessive stop outs.

When you talk of your trading system, you should think about its win ratio and the payoff ratio. You should want to improve on them. The best way to do this is to develop a stop loss strategy that takes into account currency market conditions. So right there you can increase your profitability if you increase the number of winning trades that is your win ratio thereby decreasing your trading cost. A trading system is like having a girl friend. You can only have one girl friend at one time. There need to be a connection between you and your trading system. It truly is like having a personal relationship. Finding the right trading system can be a lengthy process. You must believe in your trading system and have a high degree of trust that it can produce consistent level of profits overtime.

You need to thoroughly test your trading system and try to measure and calculate its parameters accurately. If you have a trading system that isn’t working for you and your win ratio and your payoff ratio don’t generate a profit over time then you need to rethink your trading strategy. But you must also understand that no trading system can be perfect and no trading system can produce 100% winning trades. When you lose a trade, it can be your trading system or it can be you yourself. Determine if it is your trading system that isn’t working or is it your trading psychology that is off. Make adjustments to entry and exits. Maybe the market conditions have changed and you haven’t adjusted your trading system to the new market conditions.

Test your trading system overtime. Make a number of trades with your trading system. Just keep this in mind that if you don’t give your trading system a chance to work jumping constantly from one trading system to another trading system in search of a holy grail won’t help you. Divorce is never a good idea. But if the things don’t work out there is no recourse except taking a divorce. Divorce of any kind can be emotionally and financially expensive so proceed with caution when divorcing your trading system. The decision to divorce your trading system should be a carefully thought out one.

You ultimately will also be profitable if you feel comfortable and confident with your trading system. The primary purpose of your trading system is to make you feel comfortable and confident. In the end, you need to develop a relationship with your trading system. You will feel confident when your trading system has proven to you and you have proven to your trading system that both can work together. It’s a team work.


It gives me great pleasure to announce that Jon "DRJ" Najarian, options trading superstar, CNBC Contributor, noted book author and co-founder of TradeMONSTER and OptionMONSTER, is back with us to help present a special webinar...


... this Thursday evening. As you may know, TradeMONSTER launched as a new online broker in October 2008. It's an innovative trading platform for stocks and options trading.

For stock and option traders, this platform takes the whole process - fundamental report cards, evaluating trades, simple order entry and execution - to a whole new level. Better yet, TradeMonster is constantly evolving and improving through client feedback and suggestions.

On Thursday night's webinar, you'll get a "soup-to-nuts" demonstration of tradeMONSTER from senior executive Skip Shean. After Skip does the introductory demo, he'll be joined by Jon, who will give his view of the current market environment. Then Jon will give some example trades, and Skip will show you how to place them on TM's innovative platform!

The webinar will be this Thursday, September 3rd, at 9:00 pm EST. After the presentation, you'll be able to ask questions. Also, a lot of people have been invited, and there is a seat limit, so please register quickly. For more details, and to register for this exciting webinar, you can go to this web page...



Date: Thursday, September 3, 2009

Times: 6:00 pm Pacific Time
7:00 pm Mountain Time
8:00 pm Central Time
9:00 pm Eastern Time

Length: 1 hour, plus questions

Questions: You bet!
Who Can Attend: You - and your friends (tell them!)
Seats: Seats are limited - don't delay.

Registration: There is NO CHARGE to attend. Use the appropriate registration button above.


Whenever "DRJ" is 'in the house', lots of people are likely to show up (they always have in the past), so please get there early to assure your 'virtual seat' to this special webinar. Hope to see you this Thursday evening with "DRJ" and Skip! Register today:


Trade Smart. Not Often.
Brett Fogle, President
Options University

Candlestick Guide

Download Candlestick Guide (82 pages) free after you finish reading this article. This candlestick guide is a complementary gift for you from Options University and is comprehensive. Candlesticks have become popular in the Western trading community especially the United States in the past decade. However, candlestick charting methods had been developed by Japanese rice traders hundreds of years back.

Candlestick Guide

Internet made possible the availability of online trading to retail trading. The advent of internet has leveled the playing field for traders whether they trade stocks, futures, options, commodities, precious metals or currencies. In the last two decades there have been seismic changes in the way people used to trade. Access to the market is now only one mouse click away. Trade just by clicking your mouse!

Candlestick Guide

The opening of retail trading especially in the currency markets that was previously only open to large players like big banks and corporations has been a revolution. Market information is now in most cases freely available online. Internet has made commission rates dramatically lower. The result is that a whole generation of new traders and investors want to try their luck beating the market. You can now demo trade with virtual money to develop and hone your trading skills.

Candlestick Guide

Did you attend the last Steve Nison Candlestick Charting Technique webinar? Now, you should. Steve is the master of candlesticks and you can learn a lot from attending his candlestick. I am a great fan of candlesticks charting and I have seen many traders both new and professionals becoming die hard fans of candlestick charting. Why? Because candlestick charting is the best tool available. Can you beat the market? It depends if you are using the right tools.

On your trading platform provided by most of the online brokers you will find various types of charts. There are many forms of charting techniques that have been developed over time. Why candlestick charting is superior to other forms of charting like the line charts, bar charts or point and figure charts? One of the best features of candlestick charting is its visual appeal and readability. You can glance at a candlestick chart and quickly gain an understanding of what’s going on with the price action in the market.

Candlestick Guide

Knowing support and resistance is very important for traders. Opening and closing price levels can be a very important area of support and resistance from day to day. You can easily spot and opening and closing price of a security or currency on a candlestick chart. Have you ever heard names like Harami, hanging man, doji etc? Well these are the names of a few candlestick patterns. There are certain specific candlestick patterns that can help you identify when is the best time to buy, sell or wait on a trade or investment. This information can be extremely useful for short term traders like day traders and swing traders.

Candlestick Guide

Learning how to spot these candlestick patterns is very important for you. In order to trade and invest effectively using candlestick charts you need to understand these candlestick patterns. These candlestick patterns can be a real boon to your trading and you can combine them with other technical indicators for even more reliable results. A trader needs to keep abreast of what is happening in the market. Many different types of candlestick patterns can tell you what may lie ahead in the market. Patterns appear on the candlestick charts as simple, single stick occurrences or complex multi stick formations.

Candlestick Guide

Entry and exit are the two most important things in any trade. You may use the information provided by candlestick patterns to decide when to get into a trade, when to get out of a trade or even when to hang unto a trade you are already in. This information can be highly valuable in knowing that the prevailing trend might reverse or continue. Now you can download your candlestick guide. You don’t need to waste your money on buying a guide because this candlestick guide is a complementary gift for you from the Options University. This is the best candlestick guide in the market. Download your 82 page candlestick guide here complete with strategy flash cards all free.

Candlestick Guide

Forex Trading Club

You can't beat live trading or real systems when it comes to trading. No amount of hypothetical talk will ever match watching someone in real-time trade and make money. If there is one thing I want you to understand, it's this. You have to be selective about whom you are listening to. It's OK to pick up a book at Amazon and start educating yourself in trading.

Forex Trading Club

But here's the problem, it's only real in your mind, and that is one of the major reasons so many traders blow their accounts. I still don't understand why anyone would consider any other alternative than the Surefire Trading club. Real traders share their systems and you get to ask them any questions you like.

Forex Trading Club

Not only that, once a week one of the faculty members invites you to watch him trade live and in real-time. It's like Tiger Woods saying "Hey , let's play some golf" and someone saying, "no wait, I would rather read this book on golf". Some people like what they do and others don't but no one can say that there is a better place for traders to learn and make cash than here:

Forex Trading Club

Anyway, there are still some places left and you are welcome to hear what others have to say. There is no need to be overwhelmed by all of this. It's simple to get started. You look at a few of the systems that won the competition. You choose one and use it. Simple...

Forex Trading Club

Traders talk about how hard trading is, but what if it were different? What if your main worry was how much tax you had to pay or how you would invest the extra cash you made? If you are not doing well right now then that may seem unrealistic, but let me tell you, there is a small group of traders who do have to worry about those things. Meet them here:

Forex Trading Club

The difference between success and failure in the trading game is thin. It only takes one technique or one pattern or one indicator combination to change your life.If you would like to see a group of traders who have turned that corner, then you can see them here:

Forex Trading Club

The biggest thing you will get from this is that they prove that it can be done, and then they show you how they do it. Why would you even consider anything else about trading? These guys show you how they did it. You just don't get that anywhere else.

Forex Trading Club